The activity type classifies the activities performed within a company by one or several cost centers. If a cost center provides services for other cost centers, orders, and processes, this means that the resources of the cost center are used. The costs of these resources need to be allocated to the receivers of the activity. Activity types serve as tracing factors for this cost allocation.
In an internal activity allocation, the quantity of the activity, such as the number of consulting hours, is entered either manually or automatically into SAP S/4HANA Finance. The system calculates the associated cost based on the activity price, and generates a debit to the receiver and a credit to the cost center providing the activity for quantity and costs. To perform the allocation, the system uses a secondary cost element that is stored in the activity type master record as default values.
You can restrict the use of the activity type to certain types of cost centers by entering the allowed cost center categories in the activity type master record. You can enter up to eight allowed cost center categories, or leave the assignments unrestricted by entering an asterisk (*).